KUALA LUMPUR: The MIC is tightening procedures in awarding study loans as only 34 per cent of the RM86 million disbursed has been repaid.
The loans were provided through the MIC's educational flagship, the Maju Institute of Educational Development (MIED), to more than 8,000 students since 1984.
MIED director Prof Datuk Dr T. Marimuthu said legal action had been instituted against 2,000 defaulters, of which judgment had been obtained against 200 of them.
He said the defaulters either could not be traced owing to a change of address or could not afford to repay the loans upon completion of their studies.
Marimuthu said the defaulters and their guarantors were also blacklisted, preventing them from obtaining loans from other sources.
"Since October, we have restructured the loan programme to allocate funds on a yearly basis rather than for the whole duration of the course.
"If a student pursues a three-year course, the MIED will allocate the study loan for the first year only.
"Loans for the the remaining years will be based on the student's academic performance and also with funds provided by his parents or guardians.
"Another measure is to discontinue loans of RM40,000 or more for students," he said at the presentation of RM2.7 million study loans for 289 students at the MIC headquarters in Jalan Rahmat, yesterday.
Marimuthu urged students to promptly repay their loans so as not to deprive other deserving cases.
"The non-repayment of loans has put a financial strain on the MIED which has difficulty generating funds from banks," Marimuthu added.
0 comments:
Post a Comment